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GBP/USD breaks support, hits 5-month lows

FXStreet (Córdoba) - The GBP/USD extended its trip lower and having broken below the 1.6535 support area, it stretched to its lowest level since March.

Even though the GBP/USD attempted to stage a corrective bounce from the 1.6550 zone post-UK PMI data, it was capped by 1.6580 and came under renewed pressure, falling much deeper and turning into the worst performer in the FX market. The Cable broke below several supports and stretched to a low of 1.6516, last seen Mar 26.

At time of writing, the pair is trading at 1.6520, down 0.51% on the day. The GBP/USD is retreating after 4 consecutive days of gains, after being rejected from the 1.6645 area yesterday’s European session.

GBP/USD technical levels

Immediate support is now seen at 1.6508 (Mar 26 low) and the 1.6500 psychological level. On the other hand, resistances could be found at 1.6580 (intraday level/200-hour SMA), 1.6612 (Aug 27 & 28 highs) and 1.6645 (Sep 1 high).

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